Lankan shares hit 1-month closing low on foreign fund outflow
Saturday, 24 January 2015
COLOMBO, Jan 23 (Reuters): Sri Lankan shares fell to a one-month closing low on Friday, led by selling by foreign investors, slipping by more than 3 per cent in the week on concerns over political stability as the government got ready to present its interim budget on Jan. 29.
The main stock index ended 0.72 per cent lower, or 52.96 points down, at 7,276.63, its lowest close since Dec. 24. It lost 3.15 per cent in the latest week.
"Still there is a bit of uncertainty in the minds of people, and investors are adopting a wait-and-see approach. We believe confidence will be restored after the budget," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
There was net foreign outflow of 518.3 million rupees ($3.93 million) on Friday, the highest net offshore selling since Nov. 4. Foreign investors bought a net 22.07 billion rupees worth of stocks last year.
The day's turnover was 987.4 million rupees, less than last year's daily average of 1.42 billion rupees, exchange data showed.